The euro is in the midst of its third day of large declines, touching the lowest since June 6.
Support at the moment is at 1.3127, which is the 50% retracement of the June rally. I don’t expect that to hold as dollar demand swells. The bigger area of support is the cluster from 1.3079 to 1.3090 representing the 55, 100 and 200-day moving averages with the 61.8% retracement at 1.3059 just below.
![EURUSD daily chart June 21, 2013](http://az705044.vo.msecnd.net/20130621/EURUSD-daily-chart-June-21-20131.png)
A large portion of the euro rally in June was fueled by short covering. Expect the market to sell bounces.